For Action

Draft Annual Report for the Transit Commission for 2017

Date: May 29, 2018 To: TTC Audit & Risk Management Committee From: Chief Financial Officer

Summary

Each year, the TTC prepares an Annual Report which provides a summary of key accomplishments for the year and the consolidated financial statements of the TTC and its subsidiaries.

This report presents the non-financial statement information to be contained within the 2017 Annual Report.

Note that the 2017 financial statements are being submitted to the Audit & Risk Management Committee for approval at this meeting through a separate report.

Recommendations

It is recommended that the TTC Audit and Risk Management Committee:

1. Approve the report.

Implementation Points

This report must be approved at the May 29, 2018 TTC Audit & Risk Management Committee Meeting to ensure timely publication and distribution of the 2017 Annual Report.

Financial Summary

There are no financial implications resulting from the adoption of this report.

Equity/Accessibility Matters

Once approved, TTC will post an AODA-compliant version of the 2017 Annual Report on the TTC website.

Draft Annual Report for the TTC for 2017 Page 1 of 3 Decision History

TTC’s Corporate Policy 6.2.0 Financial Reporting to the Board, paragraph 4.1 states that annual audited financial statements must be included in the TTC’s Annual Report.

Furthermore, at its meeting on February 9, 2017, the TTC Audit & Risk Management Committee approved that the terms of reference of the Audit & Risk Management Committee, which includes a requirement to “review other sections of the annual report before release and consider the accuracy and completeness of the information” as set out in item 2 at:

https://www.ttc.ca/About_the_TTC/Commission_reports_and_information/Committee_m eetings/Audit_Risk_Management/2017/February_9/Reports/2_TTC_Audit_%20and_Ris k_Management_Committee_Terms_Of_Referenc.pdf

Issue Background

The report presents the non-financial statement information to be contained within the 2017 Annual Report.

Comments

The attached 2017 Annual Report contains the following: 1. Chair’s Letter 2. CEO’s Statement 3. 10-Year Non-consolidated Financial and Operating Statistics 4. 2017 Corporate Communications Content 5. Management Directory – 2017

The 2017 Annual Report will be issued following approval of the consolidated financial statements at the June 12, 2018 TTC Board meeting.

Contact

Stephen Conforti, Head of Finance & Treasurer (416) 393-3654 [email protected]

Signature

Dan Wright Chief Financial Officer

Draft Annual Report for the TTC for 2017 Page 2 of 3 Attachments

Attachment 1 - 2017 TTC Draft Annual Report

Draft Annual Report for the TTC for 2017 Page 3 of 3 2017 Annual Report Toronto Transit Commission

Contents

Chair’s Letter 3

The TTC Board 7

CEO’s Statement 9

Executive Team 13

Line 1 Extension opens to the public 15

Corporate Plan Achievements 2017 18

Consolidated Financial Statements of TTC 21 Year ended December 31, 2017

Notes to the Consolidated Financial Statements 29 for the Year ended December 31, 2017

Consolidated Financial Statements – 64 As at and for the Year ended December 31, 2017

Conventional System – 10 Year Non-Consolidated 66 Financial and Operating Statistics (Unaudited)

Management Directory – December 31, 2017 69 TTC’s Line 1 Extension to York Region opened to the public on December 17, 2017.

2 | Toronto Transit Commission – Annual Report 2017 Chair’s Letter

To: Mayor John Tory and Councillors of the City of Toronto

As Chair of North America’s Transit System of the Year, it is my privilege to submit the 2017 Annual Report for the Toronto Transit Commission.

It was a great honour for the TTC, Commissioners and all staff to accept the American Public Transportation Association’s award for Outstanding Public Transit System for 2017. The entire organization was proud to be recognized by our industry peers who selected the TTC for the monumental work that was achieved over the past five years to modernize the network on all fronts: Safety; Customer; People; Assets; Reputation; Financial Sustainability; and Growth. We improved all aspects of TTC service to achieve our vision of a transit system that makes Toronto proud.

A year of significant accomplishments was capped off on December 15, Subway riders were 2017 as the TTC stood with our federal, provincial and municipal funding partners to celebrate the much-anticipated and long-awaited served by nine official opening of the Line 1 subway extension into Vaughan, in York more accessible Region. The 8.6-kilometre extension from Sheppard West to Vaughan stations – St Clair, Metropolitan Centre opened to the public two days later. It was truly a milestone for rapid transit in Toronto and neighbouring Woodbine, Coxwell York Region. The Toronto-York Spadina Subway Extension is the first and the six on the subway to cross the Toronto municipal boundary. It is also the first new extension. subway expansion to open in 15 years. Along with our funding partners, we are determined to see more major transit projects get built sooner in our great city.

In 2017, we saw continued improvements in the planning and scheduling of TTC services. More than 250 schedule adjustments were made to the network last year. Many of these adjustments were aimed at improving overall performance and resulted in less overcrowding and more reliable service for customers. Subway riders were served by nine more accessible stations – St Clair, Woodbine, Coxwell and the six on the new extension. Our streetcar network saw nearly 60 new accessible cars in service and the bus network was reinvigorated by hundreds of new clean diesel buses. Over the next few years, we’re set to receive more than a thousand low-emission and zero-emission buses as the TTC accelerates its green bus procurement program.

| 3 This is what the new TTC looks like: modern, accessible and connected. These improvements are all part of creating a better, more reliable public transit service for Toronto, which already carries well over half a billion people each year.

I would like to thank Mayor Tory and Toronto City Council for their continued support for the TTC and public transit in Toronto. I would also like to thank my fellow Commissioners who served with me in 2017: Vice-Chair Alan Heisey Q.C., John Campbell (Ward 4 Etobicoke Centre), Mary Fragedakis (Ward 29 Toronto-Danforth), Vincent Crisanti (Ward 1 Etobicoke North), Deputy Mayor-East Glenn De Baeremaeker (Ward 38 Scarborough Centre), Joe Mihevc (Ward 21 St. Paul’s), Deputy Mayor-North Denzil Minnan-Wong (Ward 34 Don Valley East), and Rick Byers, Ron Lalonde and Joanne De Laurentiis. Lastly, thank you to the thousands of women and men at the TTC who work every day to keep our city moving.

Sincerely,

Josh Colle TTC Chair April 2017

4 | Toronto Transit Commission – Annual Report 2017 The Line 1 Extension has six accessible stations and is 8.6 kilometres in length.

| 5 From Sheppard West (formerly Downsview) Station, the Line 1 Extension runs northwest through York University and north into York Region.

6 | Toronto Transit Commission – Annual Report 2017 The TTC Board

As at December 2017

Josh Colle Alan Heisey Q.C. Chair Vice-Chair

Commissioners

Joanne De Rick Byers John Campbell Mary Fragedakis Vincent Crisanti Laurentiis

Glenn Ron Lalonde Joe Mihevc Denzil De Baeremaeker Minnan-Wong

| 7 The Line 1 Extension is the first subway expansion crossing the municipal boundary of Toronto.

8 | Toronto Transit Commission – Annual Report 2017 CEO’s Statement

To: TTC Chair and Commissioners, Mayor John Tory and Councillors of the City of Toronto

In 2017 we saw truly a transformative year for the TTC. We can all look back with pride at the results of our hard work and the unparalleled transit service that we delivered to the people of Toronto and beyond. I give tremendous credit to our dedicated and hard-working employees who build, maintain and operate a world-class and award-winning public transit network. Our first goal is to always provide great service to our customers – and that is what we achieved.

As a result we can call ourselves North America’s Outstanding Public Transit System for 2017. We have accomplished a great deal to keep Toronto moving forward. From reversing service cuts and increasing service to making incredible strides on accessibility across the system, I’m proud of the efforts that we have made over the last five years. And our peers at the American Public Transportation Association have 2017 will be acknowledged it with Transit System of the Year honours. remembered for 2017 will be remembered for the grand opening of the Line 1 subway the grand opening extension to Vaughan. It was an awesome event that saw the launch of the newest stretch of track to our subway network since Line 4 of the Line 1 Sheppard opened in 2002. And for the first time the TTC subway subway extension reached across to serve our riders beyond Toronto’s border. to Vaughan. The extension is an incredible, state-of-the-art subway. Six beautiful and accessible stations feature a modern fare collection system, an abundance of unique public art, bike facilities and commuter parking. The line enables numerous new transit connections to help move commuters more seamlessly across the Greater Toronto Area with links to GO rail service, TTC, York Region Transit, Viva and Brampton bus services, and future connections to the Highway 407 Transitway and Finch West LRT.

Even more impressive, the extension features state-of-the-art, communications-based train control, also known as Automatic Train Control, the modern signalling system that will enable the TTC to run trains closer together safely when it is fully fitted throughout Line 1 in the near future.

| 9 It was a personal thrill to witness on the first day of service the first northbound and southbound trains deliver our funding partners to for a celebratory Toronto-York greeting. It was an unprecedented moment in our history.

I cannot thank enough our incredible workforce, including former Chief Executive Officer Andy Byford, for inspiring us to build a transit system that makes Toronto proud. He paved the way forward with the TTC’s inaugural Five-Year Corporate Plan, which was successfully capped off with the TTC receiving APTA’s coveted top award and the opening of the Toronto-to-York subway.

The latter proved to be the perfect launching pad to the TTC’s next five-year plan, which will take Toronto’s transit system to the next level. The TTC has a great deal of exciting projects to deliver over the next five-year period to keep Toronto moving in the right direction.

Sincerely,

Richard J. Leary Chief Executive Officer (Acting) April 2017

10 | Toronto Transit Commission – Annual Report 2017 The Line 1 Extension was jointly funded by the Government of Canada, the Province of Ontario, the City of Toronto and The Regional Municipality of York.

| 11 The Line 1 Extension is the first subway expansion since opened in 2002.

12 | Toronto Transit Commission – Annual Report 2017 Executive Team

Rick Leary Kirsten Watson Chief Executive Officer (Acting) Deputy Chief Executive Officer (Acting)/Chief Customer Officer

Susan Reed Tanaka Dan Wright Collie Greenwood John O’Grady Gemma Piemontese Chief Capital Officer Chief Financial Officer Chief Service Officer Chief Safety Officer Chief People Officer (Acting)

Brad Ross Joan Taylor Jim Ross Megan MacRae Jim Fraser Executive Director of Chief of Staff Chief Operating Executive Director of Deputy Chief Corporate and Officer (Acting) Human Resources Operating Officer Customer (Acting) Communications

| 13 Prime Minister Justin Trudeau joined TTC Chair Josh Colle, Ontario Premier Kathleen Wynne and Toronto Mayor John Tory to officially open the Line 1 Extension on December 15, 2017.

14 | Toronto Transit Commission – Annual Report 2017 Line 1 Extension opens to the public

The TTC’s Line 1 Extension to York Region opened to the public on December 17, 2017. In a historic moment, the first trains simultaneously departed Sheppard West and Vaughan Metropolitan Centre at 8 a.m., marking the start of revenue service to and from York Region.

The official ribbon-cutting ceremony on the Toronto-York Spadina Subway Extension project was held on December 15 at Vaughan Metropolitan Centre terminal station by Prime Minister Justin Trudeau, Premier Wynne, Mayor Tory and Wayne Emmerson, Regional Chairman and CEO of York Region. Dignitaries took the ceremonial first ride to York University – home station to more than 50,000 students, staff and faculty.

The Line 1 Extension project is a six-station, 8.6-km extension of the Line 1 Yonge-University Subway from the current , northwest through York University, and north into York Region. It represents the TTC’s first subway expansion crossing the municipal boundary of Toronto into the 905 region. The project was jointly funded by the Government of Canada, the Province of Ontario, the City of Toronto and The Regional Municipality of York.

The Line 1 Extension is expected to add an estimated 36 million transit trips and eliminate 30 million car trips per year, helping to ease traffic congestion, improve air quality and fight climate change.

| 15 Vaughan Metropolitan Centre Station is Line 1’s new terminal station.

16 | Toronto Transit Commission – Annual Report 2017 Here are the six stations:

Vaughan Metropolitan Centre: is located north of Highway 7 to the west side of the relocated Millway Avenue. The terminal station is a multi-modal transportation hub with on-street passenger pick up and drop off (on New Park Place and Millway Avenue) , and connections to YRT SmartREIT Bus Terminal and to the Viva BRT, which will run in the centre of Highway 7. Includes: four elevators and six escalators.

Highway 407: is located west of Jane Street and south of Highway 407, west of Black Creek. Includes: 18-bay GO/YRT/Viva bus terminal, 560-space commuter lot, one passenger-pick-up-and-drop-off (30 spaces), connection to future Highway 407 Transitway. Includes: two elevators and seven escalators.

Pioneer Village: is located diagonally below Steeles Avenue West. Includes: 12-bay TTC and 5-bay YRT bus terminal, 1,950-space commuter lot, one passenger-pick-up-and-drop-off (11 spaces). Includes: four elevators and 10 escalators.

York University: is located at York University, crossing underneath Ian Macdonald Boulevard in the heart of the Keele Campus at the east end of the Harry W. Arthurs Common. Includes: two elevators and six escalators.

Finch West: is located under Keele Street, north of Finch Avenue West. Includes: Five-bay TTC bus terminal, 358-space commuter lot, one passenger-pick-up-and-drop-off (10 spaces), future connection to Finch West LRT. Includes: three elevators and eight escalators.

Downsview Park: is located at Downsview Park on the south side of Sheppard Avenue West, centred under GO Transit’s Barrie Commuter Rail line. Includes: connection to Barrie GO rail service. Includes: three elevators and six escalators.

| 17 Corporate Plan Achievements 2017

Initiative Achieved

Safety Operational and Occupational Safety • Implement Asbestos Management Program (key departments) Q1 2017 • Launch Bio-Hazard e-Learning to all staff Q1 2017 • Audit of fleet-based Fire Extinguisher Maintenance Program Q2 2017 • Review and update Hearing Loss Prevention Program Q2 2017 • Review and update Development of Safety, Health and Environment Q2 2017 Policies and Procedures • Review and update Incident Reporting and Investigation Corporate Q2 2017 Program • Develop and approve iNet Portable Gas Monitoring System Program Q2 2017 • Improve the incident reporting and investigation element of the Q3 2017 SH&E Management System (includes near miss reporting) • Review and make improvements to the Fire Safety Corporate Q3 2017 Program • Develop new Musculoskeletal Disorders Corporate Program Q3 2017 • Review and improve the Fire Safety Corporate Program Q3 2017 • Approve new Joint Health and Safety Committee Terms of Reference Q4 2017 • Review and update Safety Alert Procedure Q4 2017 • Develop Workplace Violence Corporate Program Q4 2017 • Develop new Mechanical Material Handling Equipment Corporate Q4 2017 Standard • Conduct subway training for Toronto Fire Services and Vaughan Fire Q4 2017 Services • Conduct Emergency Exercises on TYSSE Q4 2017 • Develop and Approve Management of Occupational Health and Q4 2017 Safety Hazards and Risks Standard • SH&E – Biohazard Control Program Audit Q4 2017 • SH&E – SH&E Communications Audit Q4 2017

Environmental Safety • Develop new Waste Management Program Q1 2017 • Develop new Environmental Due Diligence Procedure for Buying Q3 2017 and Leasing Properties

Enterprise Risk Management (ERM) • Deploy ERM system to 67% of TTC departments Q4 2017

18 | Toronto Transit Commission – Annual Report 2017 Initiative Achieved

Customer Customer Information Strategy • Install LED Signage Group 2 (25 Shelters) Q1 2017 • Install LED Signage Group 3 (25 Shelters) Q1 2017

Customer Charter • Pilot subway musician stages Q1 2017 • Install 200 passenger information displays in shelters Q2 2017 • PRESTO-enabled fare gates at 43 subway stations Q2 2017 • Launch an anti-harassment campaign Q3 2017 • Launch a safety and security app Q3 2017 • Keep customers informed by adopting consistent, customer friendly Q3 2017 language for communicating service status information. • Work with Bike Share Toronto to incorporate docking stations at a Q3 2017 minimum of five TTC stations • Test new technology to improve route management and real time Q3 2017 information for buses and streetcars • Open a new second exit/entrance at Woodbine Station Q3 2017 • Two elevators in service at Woodbine Station Q3 2017 • Enable Wi-Fi at 100% of stations Q4 2017 • Revise schedules on 10 bus routes Q4 2017

Primary Revenue Strategy • Confirm legacy concession fare decommissioning strategy Q2 2017 • Complete installation of fare gates at 15 secondary entrances Q2 2017 • Commence fare gate installations at initial 26 PRESTO-enabled Q3 2017 stations

People Performance Management Framework • Implement Discipline Process Program Q2 2017 • Draft Rewards & Recognition policy Q2 2017 Staff Engagement Strategy • Create Management Essentials Employee Engagement Survey Q2 2017 training module Management Development and Succession Planning • Launch Mental Wellness campaign Q1 2017 • Launch Graduate Development Leadership Program Q1 2017 • Commence Leadership Fundamentals cohort 3&4 Q1 2017 • Launch Leadership Advantage Program Q2 2017 • Launch Emerging Leaders Program Q2 2017 • Develop internal mentorship pilot for Internal LEAD Program Q2 2017

| 19 Initiative Achieved

Assets Capacity Management • Receive last 2 cars of trainset #82 Q2 2017 Second Exit and Easier Access Programs • New accessible streetcars on 514 Cherry route Q2 2017

Growth Toronto-York Spadina Subway Extension • -Substantial Performance Q1 2017 • -Substantial Performance Q1 2017 • Traction Power on Q1 2017 • Vaughan Metropolitan Centre Station-Substantial Performance Q1 2017 • TYSSE opens Q4 2017

Financial Wheel-Trans Sustainability • Roll out new Wheel-Trans eligibility processes and expanded Q1 2017 eligibility criteria • Complete public consultations Q2 2017 • Introduce Wheel-Trans Family of Services pilot Q2 2017 • Introduce new Wheel-Trans No-Show and Late Cancellation policies Q3 2017 that are more flexible, including allowing for same-day cancellations

Reputation Positive Contribution • Complete Customer Perceptions of the TTC Retail Environment Q1 2017 • Complete TTC Customer Segmentation Study Q1 2017 • Complete training for Managers/Supervisors on Human Rights, Q1 2017 Diversity & Inclusion Lens • Results available TTC Origin-Destination Study Q2 2017 • Complete Federal Tax Credit for Transit Passes Survey Q2 2017

20 | Toronto Transit Commission – Annual Report 2017 TTC Management Directory December 31, 2017

Executive Team Sam Castiglione Jane Murray Head of Operations Financial Control Chief Project Manager Rick Leary Construction Chief Executive Officer (Acting) Stephen Conforti Head of Finance and Treasurer Harpreeti Nagi Collie Greenwood Head of Rail Cars and Shops Chief Service Officer (Acting) Jacqueline Darwood Head of Strategy and Service Planning Albert Oliver John O’Grady Head of Streetcar Transportation Chief Safety Officer Gary Downie Chief Project Manager Allan Pritchard Mike Palmer Scarborough Subway Extension Head of Bus Maintenance and Shops Chief Operating Officer Jim Fraser Mark Russell Gemma Piemontese Head of Capital Programming Staff Sergeant of Investigative Services – Chief People Officer Special Operations Dan Guna Susan Reed Tanaka Head of Information Technology Chris Salvador Chief Capital Officer Services and Chief Information Officer Head of Revenue Operations

Tara Bal Craig Harper Anja Schiralli Chief Financial Officer (Acting) Head of Subway Infrastructure Director of Employee Service Centre

Brad Ross Sean Hewitt Susan Selfe Executive Director of Corporate Chief Executive Officer of Head of Service Delivery Control Communications Pension Fund Society Keith Sibley James Ross Bob Hughes Chief Project Manager Deputy Chief Operating Officer Head of Farecard Team Spadina Subway Extension

Joan Taylor Raewyn Jackson Robert Smith Chief of Staff Head of Subway Transportation Head of Bus Transportation (Acting)

Kirsten Watson Mike Killingsworth Cheryn Thoun Chief Customer Officer and Deputy Head of Transit Enforcement Head of Customer Communications Chief Executive Officer (Acting) Pamela Kraft Pete Tomlin Megan MacRae Head of Property, Planning and Senior Project Manager Executive Director of Human Resources Development Automatic Train Control

Pierre Laurin Eve Wiggins Senior Management and Head of Engineering Head of Wheel-Trans Department Heads Christine Leach Rich Wong Valerie Albanese Head of Internal Audit (Acting) Head of Streetcar Maintenance and Head of Diversity and Human Rights Infrastructure Brian Leck Teresa Bassett-Spiers Head of Legal and General Counsel Ted Zlotnik Director of Policy Development Head of Materials and Procurement Kevin Lee Tim Baubie Head of Commission Services Head of Stations For further information, please contact: Paul Maglietta Toronto Transit Commission Arthur Borkwood Head of Training and Development Head of Customer Development 1900 Yonge Street, Toronto, Paul Manherz Ontario, M4S 1Z2 Glen Buchberger Staff Sergeant of Investigative Services – Telephone: (416) 393-4000 Head of Plant Maintenance Criminal Investigations Fax: (416) 485-9394 Website: www.ttc.ca Bem Case Sue Motahedin Head of Vehicle Programs Head of Customer Service Centre

| 65 66 | Toronto Transit Commission – Annual Report 2017 | 67

CONVENTIONAL SYSTEM – 10 YEAR NON‐CONSOLIDATED FINANCIAL & OPERATING STATISTICS (UNAUDITED)

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 OPERATING STATISTICS (regular service inside the City) Passenger Trips (Millions) 533.2 538.1 537.6 534.8 525.2 514.0 500.2 477.4 471.2 466.7 Basic Adult Token Fare (at December 31) ($) 3.00 2.90 2.80 2.70 2.65 2.60 2.50 2.50 2.25 2.25 Average Number of Employees (including Toronto Coach Terminal Inc.) 14,389 14,095 13,651 13,209 12,920 12,739 12,674 12,553 12,324 11,679 Hourly Base Wage Rate & Benefits per Operator ($) 51.68 50.81 50.33 49.01 47.94 47.35 46.0712 44.7412 43.27 41.46 Kilometres Operated (Millions) Bus 142.0 138.6 131.6 131.3 129.6 125.0 123.6 124.0 123.7 114.2 Subway 82.9 83.0 82.2 80.8 79.3 78.6 76.1 75.7 75.5 74.9 Streetcar 11.5 13.1 13.9 12.8 12.5 12.6 13.1 12.7 12.3 12.1 Scarborough RT 3.4 3.5 3.4 3.5 3.5 3.1 3.3 3.3 3.3 3.3 Total Kilometres Operated 239.8 238.2 231.1 228.4 224.9 219.3 216.1 215.7 214.8 204.5

OPERATING REVENUE STATISTICS Operating Revenue – including property rental, etc. ($ Millions) 1,234.5 1,196.3 1,179.1 1,157.5 1,120.2 1,087.3 1,026.4 987.5 886.4 891.8 Operating Revenue per Passenger Trip ($) 2.32 2.22 2.19 2.16 2.13 2.11 2.05 2.07 1.88 1.91 Operating Revenue per Kilometre ($) 5.15 5.02 5.10 5.07 4.98 4.96 4.75 4.58 4.13 4.36

OPERATING EXPENSE STATISTICS 1 Operating Expenses ($ Millions) 1,696.2 1,712.6 1,695.7 1,589.5 1,491.7 1,472.4 1,460.0 1,385.9 1,328.7 1,208.7 Operating Expense per Passenger Trip ($) 3.18 3.18 3.15 2.97 2.84 2.86 2.92 2.90 2.82 2.59 Operating Expense per Kilometre ($) 7.07 7.19 7.34 6.96 6.63 6.71 6.76 6.43 6.19 5.91

OPERATING SUBSIDY STATISTICS 11 Operating Subsidy ($ Millions) 461.8 516.310 516.69 432.08 371.57 385.16 433.65 398.44 442.33 316.92 Operating Subsidy per Passenger Trip ($) 0.86 0.96 0.96 0.81 0.71 0.75 0.87 0.83 0.94 0.68 Operating Subsidy per Kilometre ($) 1.92 2.17 2.24 1.89 1.65 1.76 2.01 1.85 2.06 1.55

REVENUE/COST RATIO 72.8% 69.9% 69.5% 72.8% 75.1% 73.8% 70.3% 71.3% 66.7% 73.8%

PASSENGER VEHICLE FLEET (Conventional & Wheel‐Trans, owned or leased and in service at December 31) Buses 1,920 1,926 1,861 1,869 1,851 1,857 1,819 1,811 1,782 1,737 Subway 848 840 796 724 704 708 712 676 678 678 Streetcars (CLRV & ALRV) 184 219 235 247 247 247 247 247 248 248 Streetcars (LFLRV) 57 30 13 3 0 0 0 0 0 0 Scarborough RT Cars 28 28 28 28 28 28 28 28 28 28 Wheel‐Trans Buses 212 199 205 221 221 246 217 227 188 147 Total Vehicle Fleet 3,249 3,242 3,138 3,092 3,051 3,086 3,023 2,989 2,924 2,838

See accompanying notes for conventional system – 10 Year Non-Consolidated Financial & Operating Statistics (Unaudited)

NOTES for CONVENTIONAL SYSTEM – 10 Year Non‐Consolidated Financial & Operating Statistics (Unaudited)

1. In 2011, the TTC adopted Public Sector Accounting Standards (PSAS) for its financial reporting. Prior to the adoption of PSAS, depreciation expense on subsidized assets was completely offset by the related capital subsidy and the accounting expense for the TTC Pension Fund was equal to the TTC’s cash contributions. To maintain consistency with both the pre‐2011 presentation in this schedule and the TTC’s operating budget, beginning in 2011 the operating expenses exclude depreciation on subsidized assets, the TTC Pension Fund expense or income that is in excess of the TTC’s cash contributions, and capital project write downs and environmental expenses that are funded through capital subsidy.

2. In 2008, the total subsidy paid by the City was $131.4 million, consisting of $145.1 million for the operating subsidy, $2.8 million for the City special costs, less a $16.5 million long‐term payable for employee benefits. The City allocated $171.8 million of Provincial subsidy to the operating budget.

3. In 2009, the total subsidy paid by the City was $302.7 million, consisting of $350.7 million for the operating subsidy, $3.0 million for the City special costs, less a $30.4 million long‐term payable for accident claims and a $20.6 million long‐term payable for employee benefits. The City allocated $91.6 million of Provincial subsidy to the operating budget.

4. In 2010, the total subsidy paid by the City was $278.2 million, consisting of $306.8 million for the operating subsidy, $3.0 million for the City special costs, less a $17.3 million long‐term payable for accident claims and a $14.3 million long‐term payable for employee benefits. The City allocated $91.6 million of Provincial subsidy to the operating budget.

5. In 2011, the total subsidy paid by the City was $317.7 million, consisting of $342.0 million for the operating subsidy, $3.4 million for the City special costs, less a $14.6 million long‐term payable for accident claims and a $13.1 million long‐term payable for employee benefits. The City allocated $91.6 million of Provincial subsidy to the operating budget.

6. In 2012, the total subsidy paid by the City was $278.4 million, consisting of $293.5 million for the operating subsidy, $3.5 million for the City special costs, less $18.6 million long‐term payable (employee benefits of $23.3 million less accident claims of $4.7 million). The City allocated $91.6 million of Provincial subsidy to the operating budget.

7. In 2013, the total subsidy paid by the City was $273.4 million, consisting of $279.9 million for the operating subsidy, $3.6 million for the City special costs, $13.1 million for accident claims and less a $23.2 million long‐term payable for employee benefits. The City allocated $91.6 million of Provincial subsidy to the operating budget.

8. In 2014, the total subsidy paid by the City was $301.4 million, consisting of $340.4 million for the operating subsidy, $3.6 million for the City special costs, less $42.6 million long‐term payable (employee benefits of $29.8 million plus accident claims of $12.8 million). The City allocated $91.6 million of Provincial subsidy to the operating budget.

9. In 2015, the total subsidy paid by the City was $373.8 million, consisting of $427.0 million for the operating subsidy, $19.2 million for capital from current, $3.6 million for the City special costs, less $26.6 million long‐term payable for accident claims and $40.1 million long‐term payable for employee benefits, less $9.0 million draw from the TTC Stabilization Reserve Fund and $0.3 million draw from the City Tax Rate Stabilization Reserve. The $427.0 million for operating subsidy includes $2.0 million in funding for the Wheel‐Trans deficit. The City allocated $91.6 million of Provincial subsidy to the operating budget.

10. In 2016, the total subsidy paid by the City was $396.0 million, consisting of $426.4 million for the operating subsidy, $3.7 million for the City special costs, $6.3 million long‐term payable for accident claims and less a $40.4 million long‐term payable for employee benefits. The $426.4 million for operating subsidy includes $1.7 million in funding for the Wheel‐Trans deficit. The City allocated $91.6 million of Provincial subsidy to the operating budget.

11. In 2017, the total subsidy paid by the City was $383.5 million, consisting of $370.2 million for the operating subsidy, $14.2 million for contributions to Long‐Term Liability Reserve, $4.7 million for the City special costs, $34.8 million long‐term payable for accident claims and less a $40.4 million long‐term payable for employee benefits. The City allocated $91.6 million of Provincial subsidy to the operating budget.

12. The 2011 and 2010 average hourly wages & benefits per operator amounts previously reported (2011 — $45.05 and 2010 — $44.50) have been updated to reflect negotiated improvements that were applied retroactively.